Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


ETS Losses Confirmed - Groser Has Explaining To Do

ETS Losses Confirmed - Groser Has Explaining To Do

Sustainability Council Media Statement – 7 November 2012


New documents confirm the ETS has been a net loser for the taxpayer and that the government faces a big deficit in its carbon accounts, contrary to the Climate Change Minister’s denial.

Documents also show that Tim Groser and two other ministers are so keen to play down this inconvenient truth that they requested officials to consider whether the ETS accounts could be changed so that such losses would not form part of the government’s financial statements in future.

Parliament’s Finance and Expenditure Committee sought updated figures on the ETS as part of its consideration of a Bill that would all but gut the scheme. These updated estimates were requested following a Sustainability Council submission that urged the committee to obtain them.

Documents presented to the committee estimate the ETS will be 76 million tonnes of carbon dioxide equivalent in deficit by the end of this year – the total for the first five years of its operation.

These documents also show a credit of 22 million tonnes for the same period resulting from obligations under the Kyoto Protocol. After allowing for this credit, officials report that there is an overall deficit on the government’s carbon accounts of 54 million tonnes for the period from 2008 to 2012.

That is essentially the same figure the Sustainability Council first exposed on September 13 and which the Climate Change Minister then denied on Morning Report. Rather than it being the Sustainability Council that has “got it completely wrong” as he claimed, it is Tim Groser who has some explaining to do.

He has also to explain what the basis is for ministers asking officials to report on “whether ETS units should still be valued in the Crown’s financial statements”. Translated, that means ministers are asking whether local carbon credits given away by the government as corporate welfare and compensation need to be shown as a cost to the taxpayer.

The government has systematically suppressed detail on the ETS accounts so that this very complex scheme is harder still to monitor. It is breathtaking that ministers would ask officials to consider not valuing something that when given away means the recipient no longer needs to pay tax. Such gifts must be recorded as costs to the taxpayer, in line with generally agreed accounting practice.

The government’s current debt of 54 million tonnes of carbon is worth $325 million at the price of $6/tonne that officials used to value it in the estimates presented to Parliament. The debt is $1.3 billion at the $25/tonne price the government uses to consider policy options under the ETS. As this deficit will be paid off at future prices, it is analytically more appropriate to use a forecast future price when assessing its value, and this could be much higher than $25/t.

Carbon budgeting is the route to serious emission reductions. This is the approach the UK is following and it still involves pricing emissions but the emphasis is on working out practical options for cutting carbon and then setting limits on the total volume of emissions for the country over a particular period. It truly caps emissions and maximises the opportunities for funds to be spent in New Zealand.


For full media statement and references see:
http://www.sustainabilitynz.org/docs/ETSLossesConfirmedNovember2012.pdf


ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

  • Govt Probed Over Health & Safety
  • Questions and Answers 28-05-15
  • Week in Parliament 22-05-15
  • Saturday Sitting
  • House Rises At Midnight
  • Telco Levy Bill Passes
  • Telco Levy Bill Completes First Reading
  • Social Housing Bill Passes Under Urgency

  • Labour Party: McCully Doesn’t Deny Bribe In Saudi Sheep Scandal

    “In Parliament today I asked Murray McCully directly: Why is he the first Minister in history to back a multi-million dollar facilitation arrangement which in other jurisdictions is called a bribe? says Labour’s Export Growth and Trade spokesperson ... More>>

    ALSO:

    Welfare: Closure Of Relationships Aotearoa

    The Aotearoa New Zealand Association of Social Workers (ANZASW) Chief Executive Lucy Sandford-Reed is concerned about the closure of a national service which provides a wide range of services to rural and urban communities throughout New Zealand. More>>

    ALSO:

    TPPA: University Of Auckland Warns Of Negative TPP Impact

    The University of Auckland May 20, 2015 University of Auckland Warns of Negative TPP Impact With the Trans Pacific Partnership (TPP) negotiation drawing to a close, the University of Auckland has expressed serious concerns about its potential implications. ... More>>

    NZ Flag: Flag Referendum Gets Hit Hard In New Poll

    The latest Campbell Live text poll confirms it is time for the Prime Minister to listen to the public and shelve his flag referendum, says the New Zealand First Leader Rt Hon Winston Peters. More>>

    Gordon Campbell: The Government’s Belated Moves On Property Speculation

    Is it a property tax on capital gains or a capital gains tax on property? The Jesuitical distinctions in the government’s spin about its latest moves on property speculators are all about whether the government can claim that it jumped, or confess that it ... More>>

    Grant Robertson:
    Key Can’t Just Be Prime Minister For Parnell

    John Key must show New Zealanders in next week’s Budget that he is more than the Prime Minister for Parnell, and is also the Prime Minister for Pine Hill, Putararu and Palmerston North, Labour’s Finance spokesperson Grant Robertson says. In a ... More>>


    Labour Party: More Regional Jobs Go In Corrections Reshape

    News that 194 Corrections staff are to lose their jobs will have ramifications not only for them and their families but for the wider community, Labour’s Corrections spokesperson Kelvin Davis says. Prison units at Waikeria, Tongariro and Rimutaka ... More>>

    ALSO:

  • NZ First - Prison Job Losses to Send Money Offshore
  • TPPA: ‘Team Obama’ Regroups On Fast Track, Still Not Deliverable

    ‘After yesterday’s stinging and unexpected defeat for the Obama administration’s attempt to advance Fast Track legislation in the US Senate, Senate leaders have worked up a compromise they think will get them past this blockage’, according to Auckland ... More>>

    NZ Government: 5,500 More Doctors And Nurses In Our Hospitals

    Health Minister Jonathan Coleman says a record number of doctors and nurses are working in District Health Boards across the country. More>>

    Controller and Auditor General: Katherine Rich Conflict of Interest Decision

    We are writing to you about a matter that has been raised with us by members of the public. More>>

    ALSO:

    Budget 2015: Andrew Little On The 2015 Budget

    Speaking to the Chamber of Commerce, the Labour opposition leader attacked the government’s approach to economic issues facing New Zealand. He said they have been “more than reckless in their complacency” and “the next week’s budget will do nothing ... More>>

    Defence Force: NZDF Building Partner Capacity Mission Personnel In Iraq

    NZDF Building Partner Capacity Mission Personnel in Iraq The New Zealand Defence Force Building Partner Capacity training mission contingent is in place at Taji Military Complex in Iraq. The Chief of Defence Force Lieutenant General Tim Keating says the ... More>>

    PM Press Conference: ACC Levy Cuts Announced

    In a press conference this afternoon in Wellington, ACC Minister Nikki Kaye proposed $500 million worth of ACC levy cuts. More>>

    Quakes: New Process For Red Zone Crown Offers

    Canterbury Earthquake Recovery Minister Gerry Brownlee has announced a process to give everyone a say on the Crown offers to owners of vacant, commercial/industrial and uninsured properties in the Residential Red Zone. More>>

    ALSO:

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
     
    Politics
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news